International Credit Reports : presentation

Published on 14 February 2024 in Cash management, Recovery Guidelines

For a business operating internationally, assessing the solvency of foreign clients is of crucial importance. While obtaining information about the solvency of domestic companies is relatively straightforward, it becomes more complex when dealing with foreign entities.

It is essential to note the existence of "International Credit Reports," documents that provide information about individuals or businesses located in other countries.

What is an International Credit Report?

This report provides details on the creditworthiness of a business or individual located abroad, including elements such as credit score, financial statements, legal filings, and payment history.

These reports do not directly come from the concerned businesses but rather from international agencies that compile financial information from various sources. These agencies then produce a solvency report that businesses can consult before engaging with certain clients. In cases of serious doubts about a potential partner, it is wise to request this report before signing any contracts.

The interest of international credit reports for businesses

In international relations, it is common for the contacting business to be unknown. In such cases, allowing payments on invoice due dates can pose a risk.

Before the business relationship

As a business, gathering information about your prospective clients is essential for client risk management. Whether you are a service provider or a supplier, an international credit report allows you to assess client risk and ensure the reliability of a client. Thanks to our international network, we can provide international credit reports on companies located worldwide to our clients.

In the amicable or judicial debt collection phase

If you work with the Sekundi network for your international debt recovery, we use credit reports in the amicable phase to determine the client's ability to settle their debt. Indeed, if we observe payment defaults or low solvency, we take this information into account in our follow-up process and in the proposed payment solutions.

Before initiating the judicial recovery phase, knowing the solvency of the client or company will provide insights into the potential outcomes of legal action. Sometimes, it is our duty to advise against legal pursuit if there is no chance of recovering the invoice.

In the perspective of overall client risk management, it is recommended to also consider the overall financial situation of the country. Reports providing information on payment delays, solvency, and failures in the chosen country can be compared with the data from the international credit report. The international economic context can influence the solvency of foreign companies. By paying attention to this, you can better understand the macroeconomic factors that impact your future client.

The Sekundi network has over thirty partners worldwide, providing us with a comprehensive view of the financial situation in many countries. This allows us to take relevant actions regarding your debtors.

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